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last updated: 28th February 2015

Assume a simple specification with a number of non-financial (ie technical, qualitative, environmental and social) criteria and a single purchase price. It is considered that the non-financial criteria of the submissions are four times as important as the price to be paid. Therefore, the weighting of non-financial : price is 4:1 or 0.8:0.2.

Four submissions have been received and each evaluated by the 3 same users.  The score allocated were as follows:

Non-Financial Evaluation      Firm A        Firm B       Firm C      Firm D
User 1                                           45               42              43             39
User 2                                           40               43              44             37
User 3                                           38               41              42             41
Total score                                   123             126             129           117

Relative Non-Financial score    95.35         97.67         100.00        90.70

Financial – price                       £10,500     £10,350       £11,750       £9,900

Relative Financial score            94.29         95.65          84.26       100.00

Composite calculation    
Non-Financial score (*0.8)             76.28        78.14          80.00         72.56
Financial (price) score (*0.2)          18.86        19.13          16.85         20.00

Final score                                 95.14        97.27          96.85         92.56

Comments:

  • The average score is calculated for each firm. The highest score (Firm C) is allocated 100 points and the others given a relative score using the formula [firm’s score/highest score] x 100 eg Firm A is [123/129] x 100 = 95.35.
  • The lowest price, Firm D, is allocated 100 points and the others given a relative score using a different formula [Lowest price/Lowest price] x 100 eg Firm A is [9900/10500] x 100 = 94.28.
  • The scores are then adjusted using the set weightings for technical and price ie 80:20. So, again for Firm A, the technical score is adjusted to [95.35 x 0.8] = 76.27 and price score to [94.29 x 0.2] = 18.86. These are then added together, giving an overall score of 95.13.
  • The highest overall score was 97.46 for Firm B and the recommendation would be to award the contract to Firm B.
  • The worked example is available to download by clicking here.
     

Other assessment methodology used is similar to this simple example, except that it often uses more weighted dimensions e.g. - financial, technical quality and environmental and social – rather than the two used here – non-financial and price. Further, within each of the dimensions, individual criteria may also be weighted.
 

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